Taupo Property Market Report (as at October 2011)
The Taupo residential property market continues to operate in a subdued fashion. Sales activity has been patchy, however anecdotal evidence would suggest September / October has seen an increase in activity.
New dwellings consented fell during the previous 12 months by 13.7%. Since 2007 the annual number of new dwellings constructed within the district has fallen by 55%.
Commercial property has remained reasonably resilient over recent times with yields for key transactions being generally at similar levels seen throughout the last few years. Sales of properties located within the Town Centre with good tenants on long-term leases are well sought.
Currently the Taupo Town Centre has three vacant shops within the Core Retail Area, local letting agents report a reasonable level of inquiry. This level of vacancy is down from previous months where the Town Centre had five empty shops.
Demand for Industrial properties has slowed in line with the general slowing of many industrial markets nationally. Currently there is little demand from owner occupiers, a difficult rental market, with investors becoming more discerning, seeking better quality buildings and more secure tenants, leaving a quality gap in the market. Quality buildings with good long term tenants are reasonably sought after, however older Industrial buildings with marginal tenants have generally seen values fall with there being currently few buyers.
Property development sentiment has continued to be subdued throughout 2011 with Taupo being no exception. Very few new developments of significance have been undertaken with more of a “clearing” of existing stock and “distressed” property again being a feature of 2011.
The Taupo District Council’s Commercial and Industrial Structure Plan initial submission phase has now closed. This Plan suggests amendments to existing rules and zones in the Taupo Town Centre, Residential and Industrial Environments. Those interested in Taupo property should make themselves aware of these proposed Plan changes and how these may affect their property interests in the future.
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